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Govt wants disability pension recipients back at work

ELIZABETH JACKSON: The Federal Government is preparing to overhaul the Disability Support Pension.

The scheme is being assessed as part of a review into Australia's welfare system by the former head of Mission Australia, Patrick McClure.

The review's interim report is expected to be handed to the Social Services Minister Kevin Andrews next week.

But the Minister has already flagged an interest in establishing a new tiered system, which could see more rigorous medical monitoring of those on the pension.

Sarah Hawke reports.

SARAH HAWKE: The latest figures from the Government show a record number of people on the disability pension.

Over 832,000 Australian now receive the payment of up to $813 a fortnight.

About 1,000 new pensions are granted weekly, although that's a lower rate of growth than three years ago.

Mr Andrews says there's also been a shift in the type of claims.

KEVIN ANDREWS: Thirty-one per cent of those on the DSP (disability support pension) are now qualifying because of a psychological or psychiatric condition so that's overtaken the largest group historically on the DSP, namely people with muscular-skeletal injuries.

SARAH HAWKE: With $15 billion spent on the pension and with Australia's aging population, the Government's looking at options to shift more recipients back into the workforce.

The Minister's already flagged a multi-tiered system separating permanent and temporary recipients.

Some temporary recipients under 40 could face more regular reviews, which may involve independent assessors.

Mr Andrews says he's looking forward to what the review shows but abilities must be recognised.

KEVIN ANDREWS: We think that there are many people these days in particular who have episodic chronic illness - that is, they have got a capacity to perhaps work or be involved in some activity on some occasions but not on all occasions. And if we were to reverse the way we look at this and say 'well can work on people's capacity or ability rather than just concentrating on their incapacity or disability,' then we may be able to find ways in which we can help people to remain active and perhaps in some instance connected with the workforce, whereas at the moment they aren't.

SARAH HAWKE: The social services sector is supportive of helping more people with disabilities into the workplace. But it's worried that there's still too many barriers which the Government must address.

Cassandra Goldie is the CEO of the Australian Council of Social Services.

CASSANDRA GOLDIE: And we know from even the department's own report that people with mental illness are much more disadvantaged in the labour market. Employers seem to have an attitude that people are a risk coming into the workplace, and there's a lot of stigma attached to this.

SARAH HAWKE: Is the Government in fact going to have to allocate a fair bit of money to make that system work if they do go down this line?

CASSANDRA GOLDIE: First of all, we believe there needs to be much better support for people with disability, both in physical support and support on the home front. But on the other hand, appropriate supports in the workplace to support employers in breaking down the myths, in making sure that the resources and supports are put into the workplace and to continue to address the stigmas associated with it.

SARAH HAWKE: Next week's report will also cover the Newstart allowance.

But another key income support payment, the aged pension, won't be altered by Mr Andrews.

KEVIN ANDREWS: I don't know whether others might look at the aged pension. As you know, the commission of audit is looking at the whole range of government programs and government involvement; it may say something about the aged pension. I simply don't know. But what I'm saying is that the working age payments, which is my portfolio, that doesn't include the aged pension.

ELIZABETH JACKSON: And that's the Social Services Minister Kevin Andrews, ending that report from Sarah Hawke.

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